Triveni Turbine Limited Buyback Offer 2018

Triveni Turbine Limited is the market leader in India with a dominant 63% market share. It also offers comprehensive aftermarket services covering the entire lifecycle of turbines. TTL operates in higher capacity range of above 30 MW to 100 MW turbines through its subsidiary, GE Triveni Ltd., a joint venture company with General Electric.

(i) Products & Services Triveni Turbine Limited offers robust back-pressure and condensing steam turbines that work across a wide range of pressure and flow applications. For TTL, customer relations means much more than just completing the contractual commitment of supplying and commissioning the turbine. TTL stands by its customers to make their operations reliable and provides a 360-degree after sales services support during the complete life cycle for all types of industrial steam turbines. With a dedicated team of highly skilled and experienced engineers, TTL offers a wide suite of integrated solutions like erection & commissioning, spare parts, operations & maintenance and refurbishing, among others.

(ii) Customer SegmentsTriveni Turbine Limited find applications in a wide range of industries such as Sugar, Steel, Pulp & Paper, Textiles, Chemical, Palm Oil, Food Processing etc. The turbines are used in multiple applications like Co-generation, Combined Heat & Power Generation, Waste to Energy, Captive Power Generation and Independent Power Generation.

(iii) Geographical Presence With over 2500 turbines installations in over 50 countries globally, the Company is fast spreading its global footprint to more countries and geographies.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Dec 28 2018
Buyback Opening Date: Jan 14 2019
Buyback Closing Date: Jan 25 2019
Buyback Offer Amount: ₹ 150
Date of Board Meeting approving the proposal: Nov 01 2018
Date of Public Announcement: Nov 01 2018
Buyback Offer Size: 2.02%
Buyback Number of Shares: 66,66,666
FV: 1
Buyback Price: ₹ 150 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 66,66,666 (Sixty Six Lakh Sixty Six Thousand Six Hundred and Sixty Six) equity shares of face value of Rs. 1 of the Company (representing 2.02% of the total number of equity shares in the paid-up share capital of the Company) at a price of ~ 150 (Rupees One Hundred Fifty only) per equity share payable in cash for an aggregate consideration not exceeding 150 Cr (Rupees One Hundred and Fifty Crore only)

Shareholding Pattern Pre and Post buyback:

Pre Buy-back Shareholding Pattern

Category of Share Holder No. of Equity Share % of Shareholding
Promoters and Promoter Group 223,504,533 67.73
Foreign Investors (Including Non-Resident Indians, FIls) 47,787,461 14.48
Financial Institutions/Banks 24,875 0.01
Mutual Funds 41,395,939 12.55
Others (Public, Bodies, Corporate etc.) 17,259,342 5.23
Total 329,972,150 100.00

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Triveni Turbine Limited Buyback Offer 2018 in demat or physical form as on the record date [ 28.12.2018] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [14.01.2019 to 25.01.2019] by selling your shares through your broker on NSE or BSE. 3. Then on [05.02.2019], the payment will be given to you for accepted shares and unaccepted shares will be returned to your demat account.

Profit from the buyback on the bases of acceptance Ratio:

Buy 1300 Shares at CMP of Rs.103  [1,33,900/150=1300)
Acceptance Ratio 33% 50% 75% 100%
(i) Amount Invested in Buyback 1,33,900 1,33,900 1,33,900 1,33,900
(ii) No. of Shares buyback 429 650 975 1300
(iii) BuyBack Profit 20,163 30,550 45,825 61,100
(iv) Profit(%) 15.05% 22.81% 34.22% 45.63%

Recommendation:

Review and Recommendation of Triveni Turbine Limited Buyback Offer 2018 by InvestorZone team is: 4/10 Fair: 1-5 Good:5-7 Excellent: 7-10

Company Contact Details:

Triveni Turbine Limited 8" Floor, Express Trade Towers, 15-16, Sector-16A, Noida - 201301, UP, India Phone No. +91 1204308000 Fax No. +91 1204311010-11 website: www.triveniturbines.com

    Final Analysis of TRIVENI Limited 2018 ( Return Analysis)

    1. Buyback Announcement date: 01.11.2018—– Share Price was 103

    2. 1300 Shares bought at Rs. 103 means an investment of 1,33,900.

    3. Retail Acceptance Ratio was 54.36%. i.e. out of 1300 shares, 706 shares have been buyback by the company. Profit on Accepted Shares= 33182

    4. The unaccepted Shares were given back on 05.02.2019. The share price on 05.02.2019 was 102. So if you sell the remaining 594 shares at 102, then a loss of 594*1= 594

    5. Overall we can say a profit of 32588 on an investment of 1,39,000 in than 3 months.

    Anybody please help me.i have bought shares of triveni turbine ltd on 17th december,2018 & sold on 27th december, 2018 i.e. on ex- record date.am i eligible for buyback? Please help.

    Date of Opening of the Buyback Offer – Monday, January 14, 2019
    Date of Closing of the Buyback Offer – Friday, January 25, 2019
    Last date of completion of settlement by Tuesday, February 5, 2019

    Reserved Category having close to 18% Entitlement. Good one not many Retailers latched up this Stock.

    Phenomenal volume and price increase shown by stock. It even reached the target of 125 provided by sharekhan. Maybe the time to sell it though I have only few shares but with this volume it will give very poor acceptance ratio.

    Triveni Turbine – December 28, 2018 Record Date for buyback

    Bosch India approves share buyback proposal. Bosch India to buy back up to 1 mn shares at Rs 21,000/sh

    *Acceptance Ratio will be low*
    New buyers should stay away.as only 154000 shares for retailres.against current holding of 21 lakh+ holding at September quarter end.

        Yes, I found same, the reason is that market price of BOSCH was probably more than the Buyback price which was just 6% above the closing price of announcement day…

        That’s why wondering, whether they would leave some thing on table..
        Probably this is also the cause that share has not moved even 2% after buyback announcement.
        Thanks,

      Bosch India approves share buyback proposal. Bosch India to buy back up to 1 mn shares at Rs 21,000/sh

      *Acceptance Ratio will be low*
      New buyers should stay away.as only 154000 shares for retailres.against current holding of 21 lakh+ holding at September quarter end.💐

      Actually such a high difference between current price and Buyback price, always creates problem..
      Example are PC jewellers and Just Dial…
      May be buyback is to inflate and dump shares in market…

      Triveni Turbines…( Buyback at the Rs.150 upside of 47% from CMP of Rs.102)

      No. of Shares reserved for Retail Investors are = 10 lakh

      As per Annual Report, up to 31st March 2018, no. of shareholders holding from 0 to 2000 shares are close to 55 lakh and from March 2018 to Sept 2018 around 9 lakh shares are added. Therefore, we can assume that no. of shares for the retail category will be close to 65 lakh.

      So on that basis Acceptance Ratio would be 15%.

        Retail portion is 15%, means reserved for retail is 10 Lakhs. So retail entitlement ratio = 10 /65 = 15%.

        Please check. Not a good number to go for..